Contracts Commons^™

Professional Negligence Liability Of Public Accountants, Carl S. Hawkins

Vanderbilt Law Review

At least since 1905, in this country, accountants have been recognized as "a skilled professional class ... subject generally to the same rules of liability for negligence in the practice of their profession as are members of other skilled professions."' The question, then, is not whether the usual concepts of professional negligence apply to accountants, but how. What situations have produced malpractice litigation? What are the specific practices or omissions which have resulted in liability? And what are the limits of liability? Like other professionals, the accountant usually gets into the position where he must exercise his professional skill as …

Insurance - Recovery - Delay Of Insurance Company In Rejecting Application For Insurance, Harry D. Krause S.Ed.

Michigan Law Review

Plaintiff, designated as beneficiary by deceased life insurance applicant, sued defendant life insurance company in assumpsit. Deceased, a combat pilot in the Korean War, had applied for one of defendant's policies, passed the medical examination, and made several premium payments on the policy. After the applicant was killed in combat defendant refused payment, contending that it had never accepted the risk but that it had responded to the application with a counter offer containing an aviation waiver. Because of ·the applicant's frequent change of address and his early death this proposal had never been communicated to him. On appeal from …

Corporations - Officers And Directors - Liability For Inducing A Corporation To Breach Its Contracts, William H. Leighner

Michigan Law Review

Plaintiff real estate company brought suit against the directors of a corporation and other third persons for an alleged conspiracy to induce the corporation to breach its contract with plaintiff. The complaint alleged that the corporation had entered into an agreement whereby plaintiff was to procure a purchaser for certain premises owned by the corporation and that plaintiff had found a purchaser; that before a written offer could be obtained, the corporation contracted to sell to another broker who was to be used as a conduit to transfer title to the purchaser found by the plaintiff, and who was to …

Agency - Liability Of Principal For Termination Of Agents Employment, William G. Mateer S.Ed.

Michigan Law Review

In the summer of 1949, appellant entered into an oral contract for an indefinite time with the appellee whereby the former was granted an exclusive wholesale distributorship of appellee's farm and garden equipment. A four-year period followed in which appellant increased the number of dealers in appellee's product from four or five in 1949 to over one hundred in 1953. In the latter part of 1952 appellant contemplated an enlargement of its facilities which would require it to enter upon a fifteen-year lease. Since the lessor desired some assurances as to the duration of appellant's franchise, appellant wrote to appellee …

Corporations - Promotion - Discharge Of Promoter's Liability As Bidder At A Bankruptcy Sale, John Morrow

Michigan Law Review

On October 1, defendant made the high bid at a bankruptcy sale of hotel properties as "Mr. Ash, trustee." Later that same day a certificate of incorporation was executed for a corporation with Ash as treasurer. On October 4 the proper corporate papers were filed with the secretary of state. On October 4 the receivers receipted for the earnest money deposit, the instrument acknowledging, as interpreted by the court, that the receivers would look to the corporation to complete the contract and would not look to Mr. Ash personally. On October 14, the referee confirmed the sale to "Mr. Ash, …

Insurance - Recovery - Land Contract Purchaser Allowed Recovery On Both Vendee's And Vendor's Policies In Excess Of Loss, Jerome K. Walsh, Jr.

Michigan Law Review

An owner of realty entered into a contract to sell the land to the plaintiff. The vendor then took out fire insurance on his interest in the amount of $6,000 and the plaintiff obtained a policy covering his interest in the sum of $12,000, with a "three-fourths value" clause. Before performance of the contract and transfer of title, a fire occurred which caused $12,000 damage to the property. After the plaintiff paid the full contract price and took title to the property, he demanded and received an assignment of the claim under the vendor's policy. Plaintiff then brought suit on …

Business Associations, Paul J. Hartman

Vanderbilt Law Review

Use of Corporate Entity to Evade Contractual Obligations. Scott v. McReynolds afforded the Court of Appeals an opportunity to pierce the corporate veil. Plaintiff and defendant McReynolds were partners in the business of selling butane-propane gas and appliances. In a contract dissolving the partnership, McReynolds agreed not to sell gas or appliances within a specified area. Shortly thereafter, the other defendant, a corporation, was formed, and it sold gas within the exempted area in competition with plaintiff. McReynolds was president of the defendant corporation, was actively engaged in the business and was a "prime mover in the organization of the …

Bases For Master's Liability And For Principal's Liability To Third Persons, Merton Ferson

Vanderbilt Law Review

The law with regard to principal and agent grew up as part and parcel of the law of contracts. The law with regard to master and servant grew up as part and parcel of the law of torts. Each one takes its origin far back in the history of the common law.

Agents were used in an early day to effect livery of seisin, to create covenants, and to carry on commercial transactions. The terms "principal" and "agent" may be of modern origin. But the power of one person to bind another in legal transactions was familiar in the days …

Bailment - Liability For Contents Of Closed Receptacle - Mickey V. Sears, Roebuck & Co.

Maryland Law Review

No abstract provided.

Agency-Election To Sue Undisclosed Principal Or Agent, Alan C. Boyd S. Ed.

Michigan Law Review

Plaintiff brought action against a principal and his agent to foreclose a mechanic's lien on the principal's real property, alleging that he had expended labor and materials in the improvement of the principal's land pursuant to a contract between himself and the agent. Though plaintiff joined the agent as a party defendant, he did not pray for relief against him. Both defendants moved to dismiss the action. Held, action dismissed as to the agent. Whether or not the principal was disclosed at the time the contract arose, the action was properly dismissed as against the agent. If the principal …

Courts-Validity Of Contracts Restricting Venue In Actions Under The Federal Employers' Liability Act, John C. Walker S. Ed.

Michigan Law Review

Petitioner suffered injuries in the course of his duties as an employee of respondent railroad. Subsequently, respondent advanced money to petitioner and the latter agreed in writing that if his claim could not be settled he would sue only in the county or district where he resided at the time of the injury, or in the county or district where the injury was sustained. This agreement restricted petitioner's choice of venue to either a state or federal court sitting in Michigan. Ignoring the contract, petitioner sued in an Illinois court. Respondent then brought suit in the Michigan courts to enjoin …

Contracts-Broker's Listing Agreement-Effect Of Lease Of Property By Owner, C. E. Becraft

Michigan Law Review

Plaintiff, a broker, procured from defendant a listing agreement for the sale of defendant's property. Plaintiff produced a purchaser, ready, willing, and able to purchase the property, but defendant refused to convey inasmuch as he had leased the property after giving the listing agreement. The lessee refused to cancel the lease for less than $3,000. Plaintiff brought an action to recover his commission and defendant disclaimed liability as the execution of the lease was known to plaintiff and to the prospective purchaser before the offer to purchase was made. Held, defendant could not alter the plaintiff's rights by placing …

Bailment-Unknown Chattels Contained In Object Bailed, B. E. Heath

Michigan Law Review

Plaintiff's automobile was stolen from defendant's parking lot. Plaintiff had previously disclosed to defendant's agent that certain things were in the car, but had failed to mention other items also present. In an action to recover the value of all the items, held, recovery allowed only for those things that defendant knew were in the automobile, he being a bailee of those things only. Palotto v. Hanna Parking Garage Co., (Ohio 1946) 68 N.E. (2d) 170.

Contracts--The Liability Of A Building Contractor For Defects In Plans And Specifications Furnished By The Owner, James C. Brock

Kentucky Law Journal

No abstract provided.

Principal And Surety- Right Of Surety On Building Contract To Be Subrogated To Funds In Owner's Hands As Against Right Of Bank That Advanced Funds To Contractor, Mary Jane Morris

Michigan Law Review

A contract for construction of a city sewerage system provided for progress payments on the fifteenth of each month of ninety per cent of the engineer's estimate of work done during the preceeding month, ten per cent being retained by the owner until final completion of the contract. The contract also required the contractor by the twentieth of the month to pay all labor costs and ninety per cent of the cost of materials delivered the month before. Because the necessary estimates had not been made, the June check was not paid to the contractor on the payment date. On …

Abstracts, Katherine Kempfer

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.

Infants - Minority As A Defense To Rescission For Fraud, Raymond H. Rapaport

Michigan Law Review

Two defendants, one of whom was a minor, sold a business to the plaintiff. The plaintiff, in seeking to rescind the contract on the ground that it was induced by fraud, obtained a decree declaring the contract cancelled, and judgment was entered against the defendants for the sums they had received from the plaintiff. The minor defendant filed a petition to vacate the judgment as to him because during the trial no guardian ad litem had been appointed to represent him. Held, defendant is entitled to a new trial only if he could have made a good defense, and …

Contracts - Right Of Donee Beneficiary, Michigan Law Review

Michigan Law Review

Defendant contractor was engaged by the city of Duluth to do sewer construction work contemplating excavation in solid rock with heavy charges of explosives. The contract made defendant "liable for any damage done to private property and injuries sustained by persons" in the course of its work. Plaintiff's nearby land was damaged by defendant's blasting operations. Held, that plaintiff, a mere donee beneficiary, was entitled to recover, although he was not a party to the contract, had furnished no consideration, and was not identified at the time the contract was made. La Mourea v. Rhude, (Minn. 1940) 295 …

Insurance - Conditional Vendor's Insurance - Effect Of Repair By Or Restoration To The Vendee Or Sub-Vendee, Michigan Law Review

Michigan Law Review

Plaintiff, a Minnesota corporation, purchased the vendor's interest in an automobile sold under a conditional sales contract. The defendant insured the plaintiff against direct loss or damage to the automobile by collision and/or upset. The vendee, without plaintiff's knowledge or consent, sold the car to a sub-vendee who drove it to Texas, became involved in an accident, and sold the wreckage to a resident of Texas who purchased in good faith. The car was rebuilt and resold. Plaintiff sued for the loss caused by the collision. Held, plaintiff may recover even though the car was repaired by others prior …

Quasi-Contracts -- Unsolicited Performance Of A Statutory Duty, Edward S. Biggar

Michigan Law Review

An Indiana statute required county officers to publish reports of public business in two newspapers, representing the leading political parties of the county. Plaintiff, one of the two newspapers in Decatur county, printed the required notices without first obtaining official authorization. After defendant had disallowed the claim for this service, plaintiff appealed to the circuit court, there obtaining a verdict. Defendant appealed from the denial of its motion for a new trial. Held, that plaintiff had performed an obligation created by law and was entitled to recover on quasi-contract principles. On motion for rehearing, defendant urged the statute prohibiting recovery …

Contracts - Assignments - Sufficiency Of Notice To A Bank Of The Assignment Of An Account, Michigan Law Review

Michigan Law Review

On March 25, 1933 an account in D Bank was assigned to P. A week later the bank received from P a formal statement of the assignment, which the bank totally ignored for nine months. In the meantime the bank debited the account for the price of thirty shares of its stock which the depositor-assignor bought in October. On January 2, 1934, D Bank acknowledged receipt of the letter of notice, but denied any liability to P thereunder. In a suit brought by P for the account, the only question was the right of D Bank to take the …

Carriers Distinction Between Common Carriers And Contract Carriers, Marcus L. Plant

Michigan Law Review

In the recent case of Ace-High Dresses, Inc. v. J.C. Trucking Co., the defendant was a corporation organized for the purpose of doing a general trucking business. At the time of the suit it was operating under separate contracts with five dressmaking establishments, one of which was the plaintiff. Under these contracts the defendant trucked dress goods every day except Sunday. The goods were taken on in New York, carried to New Haven, Hartford or Bridgeport, left there until processed, and then taken back to New York. The defendant's drivers had keys to the factories of the processors, entered …

Vendor And Purchaser - Equitable Conversion - Application To Obligation To Extinguish Forest Fires, Michigan Law Review

Michigan Law Review

A Montana statute placed the burden of extinguishing forest fires on the person on whose "property" the fire occurred, and, on failure of such person to extinguish it, made him liable to reimburse any authorized unit that should do so. Fire broke out on property owned by D, and a Government unit extinguished it. Previous to such fire, D had contracted to sell the land to X under a contract giving X the right of possession. Held, by the doctrine of equitable conversion, X was the beneficial owner, and the land was not D's "property" so as …

Quasi-Contract As An Alternative Remedy For Inducing Breach Of Tort

Michigan Law Review

In an action for money had and received, plaintiff alleged that the International Railroad Company owed plaintiff $40,000 as compensation for services rendered under an existing and valid contract of employment; that with knowledge of this fact defendant corporation, representing that it, and not plaintiff, was entitled to this sum, fraudulently conspired with International Railway Company that this sum be paid defendant instead of plaintiff, and that said amount was paid defendant, resulting in unjust enrichment under circumstances in which the law implies a promise on defendant's part to pay said sum to plaintiff. In reversing a judgment sustaining a …

Unforgetable Knowledge, Maurice H. Merrill

Michigan Law Review

In another article, the writer had occasion to analyze the concept of notice. He there called attention to the fact that in some instances the existence of notice depends upon awareness by the person to be charged, either of the ultimate facts or of circumstances placing him upon inquiry thereof, while in other cases notice exists entirely independent of such awareness. To characterize notice of the first class he suggested the term "cognitive notice," applying to the latter the designation "absolute notice."

Quasi-Contracts-Joinder Of Misrepresenting Agent In Purchaser's Action Against Principal For Rescission

Michigan Law Review

Plaintiff was induced to purchase stock in defendant corporation through representations as to its previous earning power made by agents of the corporation who were also joined as defendants. Plaintiff sued on a theory of rescission to recover the value of property transferred in exchange for the stock in question. Held, the agents of the corporation were properly joined as defendants. Kaufman v. Jaffee, 244 App. Div. 344,279 N. Y. S. 392 (1935).

Contracts - Offer And Acceptance -Termination Of Offer By Subsequent Higher Bid Of Another

Michigan Law Review

The receiver of an insolvent bank received from one Lorensen bids of $4,500 for the building and $500 for the fixtures of the bank, the bid for the fixtures being conditioned on acceptance of the bid for the building. He received a subsequent bid of $4,600 for the building alone, no mention being made of the fixtures. Lorensen's bid for the fixtures was made on separate paper and was considered as distinct from his bid for the building. The receiver called on Lorensen, notified him of the higher bid {indicating that it had been received without qualification) and tried to …

Rationale Of Past Consideration And Moral Consideration, Hugh Evander Willis

Articles by Maurer Faculty

No abstract provided.

Quasi-Contracts -- Sufficiency Of Technical Benefit

Michigan Law Review

A brokerage house, the R. Co., having purchased stock on margin for the plaintiff, requested a payment of $1100 in order to protect themselves in carrying the account. Doubting the financial stability of R. Co. the plaintiff decided to transfer the account to another firm, the defendant, and accordingly delivered to R. Co. a personal check naming the defendant as payee, at the same time orally directing R. Co. to transfer the stock and check to the defendant and from them receive payment in full. R. Co., however, falsely represented that the check was really theirs and that the plaintiff …

Bankruptcy - Claims Against Bankrupt Indorsers

Michigan Law Review

Bankrupts were indorsers of promissory notes payable to claimants. None of these notes was due before the filing of the petition in bankruptcy and some of them did not mature within the year following adjudication during which proof of claims may be made. The court of appeals for the sixth circuit held that claimants could not prove on the indorsements because their claims were contingent. Held, that the claim was one "founded upon a contract express or implied," and provable even though not due until after the year allowed for proof of claims, the requirement of presentment and notice …